Your superannuation is one of your most valuable financial assets, and unfortunately, that makes it a prime target for scammers. With sophisticated tactics and ever-evolving schemes, scammers know just how to exploit vulnerabilities in the system and people’s trust to get their hands on your retirement savings. Understanding the methods scammers use and taking proactive steps to protect your superannuation can save you from devastating financial loss.
Early access schemes
One of the most common scams involves tricking people into believing they can access their superannuation early. Scammers will promise to help you withdraw your super before you meet the legal conditions of release, often claiming you can use the funds to pay off debts, buy a home, or cover personal expenses.
While it’s tempting to think you could tap into your retirement savings early, be warned—early access to super is highly restricted. The Australian Tax Office (ATO) allows early withdrawals only in very specific cases, such as severe financial hardship, terminal illness, or through the First Home Super Saver Scheme.
Scammers often exploit rising living costs or personal financial pressures to convince people to part with their money. In these cases, they may charge high fees for “services” or, even worse, steal your identity and gain full access to your super funds.
What you can do:
- Know the rules: Super can only be accessed under certain conditions, and the ATO manages early releases through myGov. Be sceptical of anyone offering early access through alternative channels or charging a fee.
- Verify with the ATO: If you think you might be eligible for early access, always go through official government platforms like myGov or consult your super fund directly.
Self-managed super fund (SMSF) scams
Self-Managed Super Funds (SMSFs) are a popular choice for those wanting more control over their super, but scammers often use them as bait. In these scams, fraudsters pose as financial advisers or super experts, persuading you to transfer your retirement savings into a fake SMSF with promises of higher returns or better control over your money.
They might set up convincing websites or apps that mimic real financial platforms, gradually earning your trust before persuading you to make the transfer. Once they have your money, it’s often too late—the funds are gone, and the scammers disappear without a trace.
Even if you don’t hand over your super immediately, these scammers may be collecting enough of your personal information to steal your identity or make unauthorised transactions in your name.
What you can do:
- Do your homework: Before setting up an SMSF or transferring funds, research the adviser or company carefully. Look them up on ASIC’s financial adviser register and make sure they are properly licensed.
- Consult a professional: Only seek advice from licensed financial planners or accountants when considering an SMSF. Avoid making decisions based on unsolicited calls, emails, or texts.
Fake investment schemes
Investment scams are another common tactic used to access your super. Scammers may contact you with promises of high-return, low-risk investments or offer you opportunities that seem too good to pass up. They’ll often use pressure tactics, urging you to act quickly so you don’t “miss out” on these lucrative opportunities.
However, these “investments” are usually fraudulent. Once you hand over your super or personal details, the scammers can make off with your funds, leaving you with little recourse.
What you can do:
- Be sceptical of high returns: If an investment opportunity seems too good to be true, it probably is. Legitimate investments come with risk, and no one can guarantee consistently high returns.
- Take your time: Don’t rush into decisions about your super. Scammers often use urgency to push victims into making quick decisions without adequate research.
Phishing and identity theft
Phishing is one of the oldest tricks in the scammer’s book, but it’s still highly effective. Fraudsters send emails, texts, or social media messages that appear to be from legitimate institutions—such as your super fund or government agencies—asking you to click on links or provide personal information.
These messages can look very convincing, often using official logos and email formats. Once they have your personal information, scammers can gain access to your super account, make unauthorised withdrawals, or sell your details to other criminals.
What you can do:
- Don’t click on suspicious links: If you receive an email or text message that seems off, don’t click on any links or provide any personal details. Instead, contact your super fund or financial institution directly using a verified phone number or website.
- Use multi-factor authentication (MFA): Many super funds offer multi-factor authentication as an added layer of security. This makes it harder for scammers to access your account even if they obtain your login details.
What to do if you think you’ve been scammed
If you believe you’ve fallen victim to a scam or given your personal details to a fraudster, act quickly. Contact your super fund and financial institutions immediately to alert them. You can also log into your myGov account to ensure that no applications for early super release have been made on your behalf.
It’s also a good idea to contact the ATO and ASIC’s Scamwatch to report the incident and get advice on the next steps. The sooner you act, the more likely it is that you can prevent further damage to your retirement savings.
How to protect your superannuation
Here are some key tips to keep your super safe from scammers:
- Be wary of unsolicited contact: Scammers often reach out via text, email, or phone, claiming to be from your super fund or offering financial opportunities. Always verify their identity before engaging.
- Avoid sharing personal information: Never give out personal details, especially if you’re unsure about the legitimacy of the contact. This includes your super account number, passwords, or identity information.
- Monitor your super account: Check your super balance and account activity regularly to ensure no unauthorised withdrawals or changes have been made.
- Enable security features: Use multi-factor authentication where possible and ensure your contact details with your super fund are up-to-date.
Scammers are becoming more sophisticated in their attempts to access your superannuation, but by staying informed and vigilant, you can protect your retirement savings. Remember, if something doesn’t seem right, trust your instincts, verify the source, and take proactive steps to secure your super.
Written by APS Senior Accountant, Stephen Fry.
Stephen is an accountant with over 13 years of professional expertise in the areas of taxation and accounting. Currently serving as a senior tax accountant at APS Tax, Stephen offers comprehensive guidance and ensures compliance in all tax-related matters. He has developed a specialised focus in areas such as self-managed superannuation funds, cryptocurrency taxation and leveraging software and technology to assist clients in streamlining their processes. Beyond his professional pursuits, Stephen cherishes quality time with his family and enjoys unwinding on the golf course. On the weekends he also enjoys following the AFL and watching British comedy television.